Chapter 1 Flashcards
It is an organization of CPAs who are employed in
learning institutions and review centers as accounting
professors or reviewers.
NACPAE
The principle that requires assets to be recorded
initially at original acquisition cost.
Cost Principle
The body that is authorized by law to promulgate
rules and regulations affecting the practice of
accountancy profession in the Philippines.
-BOA
The language of business.
-ACCOUNTING
An organization of CPAs who perform auditing,
taxation or management advisory services.
ACPAPP
The technical component of accounting.
-MEASURING
An accounting principle which means expense is
recognized when incurred regardless of when paid.
-ACCRUAL
Users of financial information who are interested in
the information that enables them to determine
whether their loans as well as the related interest can
be collected by them when due.
-CREDITORS
Users of financial information to help them determine
whether they should buy, hold or sell their
investments.
-INVESTORS
Its main function is to establish and improve
accounting standards that will be generally accepted
in the Philippines.
–FRSC
t/f
A cooperative has perpetual life and limited liability.
F
T/F
An auditor of Commission of Audit is engaged in
public accounting.
F
T/F
The three main areas in the practice of the
accountancy profession are auditing, managerial and
corporate accounting.
F
T/F
FRSC is composed of 15 members headed by a director.
F
T/F
Accounting is the same as bookkeeping.
F
T/F
Secondary users include creditors.
F
T/F
GAAP is abbreviation for Generally Authorized
Accounting Principle.
F
T/F
A partnership is formed by at least two persons.
T
T/F
Accrual basis of accounting requires the recording of
income when earned even if the cash is not yet
received.
T
T/F
Government are interested about the continuance of
the enterprise, especially when they have a long-term
involvement with, or are dependent on, the
enterprise.
F
The important points made in the definition of
accounting include all of the following, except
a. Accounting information is both quantitative
and qualitative.
b. Accounting information is quantitative.
c. Accounting information is financial in nature.
d. Accounting information is useful in decision
making.
A
The basic professional values or ethics does not
include.
DIVERSITY
The total members of Financial Reporting Standards
Council (FRSC) is
15
If the business is not being sold, the amounts
reported in accounts for assets used in the business
operations are based on the cost of the assets. This
practice is based on.
GOING CONCERN
These are the users who are interested in information
about the continuance of an entity when they have a
long-term involvement with or are dependent on the
entity.
CUSTOMERS
What is the accounting standard setting body in the
Philippines at the present time?
FINANCIAL
REPORTING STANDARDS COUNCIL
